Industry and Academia Relations in Developing

EconomiesThe Egypt-Japan University of Science and Technology

Experience:Industry Perspective

Amir WassefFounding Member and Industry RepresentativeThe

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Background and Foundation

Part I

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EJUST: A hub between 3 Continents

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E-JUST is first University in Partnership between 2 Governments

• E-JUST is a Special Status, Government supported University

• Established according to the Bilateral Agreement signed between Egypt and Japan, and Ratified by Presidential Decree 149 of 2009.

• E-JUST’s governance is based on Japanese best practices in Education, Research, Science, and Technology.

• E-JUST aims at financial sustainability through engagement of various stakeholdersThe

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E-JUST Stakeholders

• Egyptian Government

• Japanese Government: JICA, MEXT, and Others

• Japanese Consortium of Supporting Universities [ JSUC] 12 Leading Universities

• Civil Society– Egyptian and Japanese Industry

– Egyptian and Japanese Individuals and Organizations

– MENA Governments and regional organizationsThe 2nd

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Postulates [1]

• Economic growth is mainly driven by the ability of countries to harness the power of science and technology through innovation

• Growing the economy implies addressing the main factors that affect the competitiveness of industry in the context of the various phases of economic development

• Innovation is more likely to come from SME’s rather than large corporations.

• Innovation grows out of rivalry, pressure, and challenges

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Postulates [2]

• Economically viable national projects are crucial in fostering innovations through cooperation between Academia and Industry in developing economies. [Crucial role of the Higher councils of Science and Technology]

• Government policies need to provide incentivesfor business funding of academic research

• Government funds are essential to bridge the gap between proof of concept and early stage research financing (Bridging the “Valley of Death”)

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Postulates [3]

• Research grants are attractive to industry because they do not dissolve equity.

• Grants for early stage can be used to leverage commercial funds

• The motivations for industry and academia to conduct research are quite different: Common grounds must be endorsed.

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Postulates [4]

• IPR issues related to Joint inventions must be well addressed: Disclosure of proprietary knowledge is an industry concern, but essential in academia

• Legal and legislative issues can be a serious obstacle in Academia-Business dynamics

• Venture Capital in most developing economies is still a myth…The

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Industry’s Contribution to Research

Facts and Figures

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GERD Sources of Research Funding

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Japan USA Israel Turkey Egypt

Outsourcing%

Govt.%

Business & Ind.%

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Industry’s Contribution to Academic Research

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Industry Contribution to Academic Research

0%

20%

40%

60%

80%

100%

Germany Finland Sweden UK USA

Outsource

Univ. funds

Foundations

Business

Public Funds

Grants

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Industry Contribution to Academic Research

Robert J.W. Tijssen Center for Science and Technology Studies (CWTS)Leiden University, The Netherlands IREG 5 Conference, Berlin, 6-8 October 2010

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Industry- Academia Relation

Simple Bilateral Relation

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Classic Paradigm

• Consultations: Mainly one-way

Mainly one-wayThe 2nd

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Industry-Academia Relations

The Extended Paradigm

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Who are the Stakeholders?

• Government [Instigator and Catalyst]• Industry [Principal delivery tool]• Academia/ Research Institutes [ Core

Driver]• Society [ for sustainability:

Ultimate Beneficiary]The

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Generic Classification of Industry

Is Industry Homogeneous?

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Generic Classification of Industry [Porter]

• Cost Leaders• Differentiated • Focused (niche

markets)• Focused cost

leader• Differentiated

cost leader

Differentiated Cost Leader

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The Bigger Picture

Stages of Economic Development

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The Divide

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Transitioning

Growth, Innovation, Competitiveness and Sustainability

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Industry Transitions

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Industry Transitions Lead To Economic Growth

Factor based economy

Growth led Economy

Knowledge based economy

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Classical Research Paradigm

• Linear model of Research

EducationThe 2nd

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New paradigm

• Iterative Model

Education

Adapted fm Charles W. Wessner :Converting Res. Into Innovation & growth

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TIMES Proposed New Ranking System

Source: Phil Baty Editor, Times Higher Education World University Rankings

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A Business Model from Egypt: E-JUST

Organization StructureDealing with Society: The E-JUST

FoundationThe 2nd

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Oct 2008 Introducing E-JUST

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University Corporate Relations

Sept 2009 Industry Role in E-JUST

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Dealing with Civil Society

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Rationale for Establishing E-JUST Foundation

• Established as an NGO – Foundation under Egyptian law to serve E-JUST activities

• Not-for-profit organization accountable to the BOT

• Civil Society contributions will not be channeled to government

• Flexibility in pursuing financial and sustainable activities to the benefit of E-JUST

• Observes rules of public funds, is accountable, transparent, and secureThe

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E-JUST Foundation Mandate [1]

• Establish captive corporations and other business entities serving EJUST, and engage in activities that would generate suitable revenues for the University.

• Establish and support Science Parks and Technology Incubators to the benefit of E-JUST faculty, researchers and staff with active participation of Industry and businesses.

• Receiving funds, gifts, donations, and other contributions made by benefactors and various stakeholders, and establish and manage these funds

• Receive and manage trust funds and endowment funds.• Own, supervise and manage service entities such as sports

and recreation centers, student housing, commercial centers, etc…The

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E-JUST Foundation Mandate [2]

• Sponsor and support events such as conventions, exhibitions, performances and similar activities for the benefit of E-JUST.

• Perform and deliver general training programs through E-JUST to the benefit of society.

• Encourage cross-cultural exchanges between Egypt and Japan

• Publish documents, newsletters, and other printed or electronic documents to support its activities.

• Form strategic alliances with similar entities worldwide that serve E-JUST.

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Fostering Industry-Academia Relationships

Suggestions

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Role of Government [1]

• Identify research priority areas as Societal needs

• Institutionalize Funding programs for research• Grants for early phase/ proof of concept

finance of joint SME and Academia• Increase spending on basic research:

Universities with strong Basic research are more likely to cooperate successfully with industry The

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Role of Government [2]

• Stimulate domestic markets as means of increasing rivalry / competitiveness

• Government incentives: tax breaks, grants, early stage funding

• Strengthen factors : Human resources, infrastructure, capital, trade and business associations…

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Industry [1]

• Industry should defragment:– Encourage Clustering– Lobby for systematic zone planning as Growth

Poles

• Encourage SME’s to build capacities:– Capital Equipment funding – Tax incentives, – HR development, – Forgiving bankruptcy legislations

• Support the establishment of Standards Dissemination Bodies

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Industry [2]

• Invest in Human Resources: Profit from Government sponsored training programs

• Form strategic alliances with powerful foreign partners

• Active involvement in academia governance [ Advisory boards etc...]

• Support the establishment of Standards Dissemination Bodies

• Participate in Training programs of University students The

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Academia [1]

• Facilitate creation of spinoff Companies and allow academics to have equity positions [reduce brain drain]

• Settle IPR issues early: Include University by-laws emulating [Bayh Dole Act] until suitable laws are passed

• Establish Universities entities with flexible Legal Status to address issues with civil society [University Foundations]

• Understand Industry development phases and their varying needs

• Avoid getting trapped in problems of fragmented industries

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Academia [2]

• Encourage clustering by hosting Industry events• Act as a hub to local Tech-park, • Adapt to emerging paradigms of University ranking• Look into PBL and Iterative research paradigms• Establish special external relations administration • Consider having a TLO to facilitate and foster

Technology transfer and coordinate with other institutions, and coordinate with similar offices locally and internationally [TLO]

• Consider University’s social responsibilities• Invest in Alumni : They support their schools! The

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We will contact you soon for collaboration with E-JUST

foundation

www.ejust.edu.egAmir Wassef

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